DSME’s Romanian unit sets new flag

Daewoo Shipbuilding & Marine Engineering (DSME) said its Romanian unit has won its first order of the year.

The shipbuilder said Daewoo-Mangalia Heavy Industries clinched a deal to build two vehicle carriers each with a capacity of 6,500 units from Norway’s Ocean Yield. It is the company’s first order of the year. DSME said this reflects global shippers’ growing trust in the company.

Building a car carrier requires more sophisticated welding technology than that needed for bulkers or container carriers, according to the company, which provides shipbuilding technology and support.

“This marks the successful cooperation between a parent company and its subsidiary,” said Ko Jae-ho, CEO of DSME. “Daewoo-Mangalia will grow into a global shipbuilder capable of building a variety of ships.”

Until now, Daewoo-Mangalia has restricted itself to building bulk carriers and medium-size container carriers. This is the first time the company has won the chance to build high-tech ships. The company, established in 1997 by the Romanian government and DSME, has been struggling financially in the wake of the 2008 global financial crisis. It hopes the latest contract marks its first step on the road to recovery. Daewoo-Mangalia has also been suffering a brain drain as local workers fled to southern Europe in search of higher salaries. The Romanian government is currently helping the shipbuilder normalize its operations in hope that this will stimulate its economy.

“A handful of contracts are now being discussed, and the company is expected to receive continuous orders until the end of the year,” said an employee at the Romanian unit.

By Song Su-hyun [ssh@joongang.co.kr]